The News International Team
03:30pm Market Closing: The market crashed more than 2 percent on geopolitical tensions and March F&O expiry. The Sensex plunged 654.25 points to close at 27457.58 and the Nifty fell 188.65 points to 8342.15.
About 1033 shares have advanced, 1781 shares declined, and 171 shares are unchanged on the BSE.
03:20pm IT outsourcing deals: In what can be a huge boost to IT players, outsourcing deals worth a whopping USD 900 million may be up for renewal before may 2015.
Tata Consultancy Services (TCS), Wipro, HCL Tech, Cognizant, Tech Mahindra and MindTree amongst the names of the IT players that are bidding for this. By mid April it should be closed. So by May mid we could see some kind of action or some kind of announcements. There is one deal from ArcelorMittal that is for USD 450 million for IT, infrastructure. Then there is Australian Westpac Bank which is likely to renew a USD 250 million deal. This is largely for application development services.
There is another application development services deal by Johnson & Johnson and that is about USD 100 million. Besides, there is a Citi Bank analytic deal that is also likely up for renewal that has not been confirmed yet that is about USD 100 million to handle the analytics across Europe.
03:10pm Market Update: The Sensex fell 677.36 points or 2.41 percent to 27434.47 and the Nifty dropped 193.10 points or 2.26 percent to 8337.70.
About 897 shares have advanced, 1854 shares declined, and 162 shares are unchanged on the BSE.
02:50pm GSPL holds 5% gains: Investors continued to buy shares of Gujarat State Petronet despite big fall in equity market today. The stock rallied 5 percent as brokerage house Citi feels the natural gas transmission company be the biggest beneficiary from new gas policy given the potential for 10-18 mmscmd of additional LNG imports.
The Cabinet Committee on Economic Affairs, on Wednesday evening, cleared a new policy (reverse bidding method) for providing imported LNG to stranded gas-based power plants at a concessional rate. The government will auction gas with each power plant allowed to bid up to 30 percent plant load factor (PLF).
The government also proposed to provide support to distribution companies from the Power System Development Fund (PSDF) through a transparent reverse e-bidding process which will make the cost of power affordable.
The government aims to finalise the framework and technology for this policy in the next one month.
02:35pm Market Update: The market extended losses with the Sensex falling 482.03 points or 1.71 percent to 27629.80 and the Nifty losing 134.60 points or 1.58 percent to 8396.20.
About 915 shares have advanced, 1757 shares declined, and 183 shares are unchanged on the BSE.
HDFC is the biggest contributor to Sensex fall, down 4.8 percent. Infosys, ICICI Bank, HDFC Bank, Tata Motors, Axis Bank, HUL, Coal India and Dr Reddy’s Labs declined 2-3 percent.
02:30pm JLR’s mega investment: Tata Motors-owned luxury car maker Jaguar Land Rover will invest 600 million pounds in the UK as part of its expansion plans, including doubling the size of its operations at its headquarters in Coventry.
The funds will be pumped into its R&D and manufacturing divisions across three JLR sites in the West Midlands region of England Castle Bromwich Advanced Manufacturing Plant; Whitley Advanced Design and Development Centre; and the National Automotive Innovation Centre in Coventry.
The largest single investment has been made at the company’s Castle Bromwich plant, where over 400 million pounds will go into new and upgraded facilities to support the introduction of the all-new Jaguar XF model.
“This investment, made here in the heartland of our UK business operations, signals the confidence we have in this region to support the creation, engineering and manufacturing of ultra-low emission, premium British products, today and in the future,” said JLR CEO Ralf Speth.
02:20pm Adani in focus: Indigenous traditional owners of the lands have rejected Indian mining giant Adani’s 16.5 billion dollar mine, rail and port projects in Australia’s coal-rich Queensland state, in what is being described as the biggest case in recent history involving native title law.
The Wangan and Jagalingou (W&J) people, the traditional owners of the lands earmarked for the mine and of much of the Galilee Basin, have rejected the Indigenous Land Use Agreement with Adani to build coal mine in the area.
Reports said that Adani took legal action to override the W&J people and, if successful, it would allow the Queensland government to compulsorily acquire the land and issue a mining lease for the Carmichael mine.
The W&J were now seeking talks with the new Labor government to convince it to refuse support to Adani’s legal action against them,rule out any compulsory acquisition, and’reject his application for a mining lease for Carmichael.
02:00pm Market Check
The market fell further in afternoon trade as crude oil prices extended gains following weak cues from US and escalation of political turmoil in Yemen. Brent and NYMEX crude surged over 5 percent each.
The 30-share BSE Sensex dropped 408.46 points or 1.45 percent to 27703.37 while the Nifty shed 115.85 points or 1.36 percent to 8414.95 ahead of expiry of March derivative contracts.
About 896 shares have advanced, 1746 shares declined, and 178 shares are unchanged on the BSE.
Jet Airways CEO Cramer Ball said the company stayed on its course for three year turnaround plan. He expects company to be profitable by 2018.